Clausi on Cannabis Industry Infrastructure: Abattis Bioceuticals

Jacob Securities hosted a Canadian Cannabis investor conference this week in Toronto. The MMRP licencees and applicants were well represented there, but so were the “infrastructure” players. Their view of the industry is very different from the producers’ view.

Below is a brief Q&A with one such infrastructure participant, Bill Fleming, the CEO of Abattis Bioceuticals Corp. (CSE: ATT | OTCQX: ATTBF). In addition to Bill’s comments below, Abattis has a US$25 million equity line facility agreement with Dutchess Opportunity Fund, II, LP, and is actively searching for intelligent cannabis-related investment opportunities.

Q: What makes Abattis Bioceuticals different from the other market participants?

A: Abattis is able to provide proprietary ingredients, bio-similar compounds, patented equipment and consulting services to medicinal markets in North America. The company is positioned to capitalize on the fast growing trend toward marijuana legalization in the United States and for medicinal use in Canada and international jurisdictions, by supplying and partnering with companies to employ its vertical cultivation systems, extraction equipment/technology, and strategic marketing support to licensed growers. Abattis also has an extensive pipeline of high-quality products and Intellectual Property for the rapidly expanding botanical drug market.

Our main differentiator is our people and our strategic partnerships. We have depth in our Board Members and we have some of the best scientific minds working with us in the herbal cannabis field. I’d like to say that we have a first mover advantage in that we are aggressively positioning ourselves to focus on the botanical drug development market which can be a fast track through the FDA approval process. We have the knowledge and intellectual capital to identify opportunity within this emerging industry.

Q: How was the Jacob Securities conference?

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A: We found it extremely informative. The conference was well attended by the herbal cannabis heavyweights, the timing was perfect as it brought the right stakeholders to the table to share lessons learned, and we heard from industry leaders to gain insight into future growth areas.

Q: What impressed you the most at the conference?

A: The vast North American representation and the fact the attendees stayed for the whole event….the speakers were from Canada and the USA and it became apparent that there is no “one solution fits all” for the industry. All companies are experiencing fragmentation with regards to regulatory, finance, and commercial, which leads to investor uncertainty yet excitement. We all seem to be operating in silos without any cohesive fabric. The individual states in the USA are the most difficult as they seem to be levering the herbal cannabis industry as an economic stimulus opportunity to create jobs, and as such are not prepared to tackle the Federal cross-border issues.

Q: What topic or company do you want to learn more about as a result of the conference?

A: The biggest thing for me is to have a better legal and commercial understanding of herbal cannabis derivatives and how Abattis can position itself to play in this field. Ultimately, companies will be required to demonstrably show the efficacy of the foods, consistent dosages and clinical studies for pain management. One of the key market areas that was briefly mentioned by one of the attendees is the partnering with USA Tribal Reserves and I’m looking forward to discuss potential relationships in this untouched area.

A: Allard or any court decision that better legitimizes or defines the herbal cannabis industry is an advantage to Abattis Bioceuticals. The future is the efficacy and the prescriptive nature of cannabis and we at Abattis through our management and science team understand these guidelines, which will allow us to be one of the lead dogs in the hunt.

Q: How do you see the edibles market developing in Canada over the next year?

A: A medicinal user who on average consumes 5-10 grams per day has difficulty in trying to smoke or vapourize the dry bud in one day and therefore must look to alternate ways for ingesting the product. Ultimately, cooking dough manufacturers and others will be producing ready-to-eat cannabis products. This will have a ripple effect into other manufactured goods processes.